Validian Corp (fka VLDI)

[Surwin]

Yes it was about three years ago some investors put up $1.225M for convertible preferred A stock with a conversion feature @ .10, but required twice their money back and first preference in a liquidation. I guess they knew the stock would be down to the penny-sub-penny level 3 years later. They must of known something the rest of us did not know, right!

Validian Closes Significant Financing, Strengthens Balance Sheet
Company Now Positioned for Negotiations with Major Companies
PR Newswire

OTTAWA, June 7, 2016

OTTAWA, June 7, 2016 /PRNewswire/ --

Validian Corp. (OTCQB: VLDI), a leading innovator in cyber security technology, today is pleased to announce that the Company has successfully strengthened its balance sheet through the completion of the following financing:

$1.225 million U.S. for the purchase of 1,225 Series A Preferred Shares, with a stated value of $1,000 per share that are convertible at $0.10 share with no interest coupon;
an exchange of $929,533.81 of Senior Secured Convertible Notes plus $74,747.92 in unsecured Senior Convertible Notes, both of which are convertible at $0.03 per share, for 1,005 shares of Series A Preferred Stock, with a stated value of $1,000 per share, convertible at $0.10 per share with no interest coupon, thereby reducing the Company's fully diluted common shares by more than 23 million;
an exchange of the remaining balance of $2,835,025.46 of principal plus accrued interest of all Senior Secured Convertible Notes, which were issued from 2009 to 2011, convertible at $0.03 per share and earn interest at 10% per annum, for 3,900 shares of Series B Preferred Stock with a stated value of $1,000 per share, convertible at $0.03 per share with no interest coupon; and
an exchange of $1,603,802.26 of principal plus accrued interest of unsecured Senior Convertible Notes issued from 2009 to 2015, which are convertible at $0.03 per share and earn interest at 10% per annum, for 2,325 shares of Series C Preferred Stock with a stated value of $1,000 per share, convertible at $0.03 per share with no interest coupon.
Combined, these transactions not only strengthen Validian's balance sheet by eliminating all of its secured debt and much of its unsecured debt, as well as by eliminating approximately $600,000 per year of interest costs going forward, but also provide the Company with more than a year's worth of working capital to be used for completing revenue generating installations and deployments with the Company's established channel partners at their existing customers and in their growing sales pipeline of qualified prospects.

"We are very pleased to complete these strategic financings which are undoubtedly a testament to the support and guidance of our largest stakeholders and new investors, each of whom have a keen understanding of the significant value that Validian's unique technology brings to commercial customers and the magnitude of our potential in several market verticals which are currently being explored," commented Bruce Benn, Chief Executive Officer of Validian. "Post transaction close, the Company is better equipped and empowered to continue its current and pending negotiations with a number of major companies to partner in the integration, deployment, use, and commercial roll out of Validian's technology in regional and global markets. Validian looks forward to securing those partnerships in the time ahead."